Corporate governance: A review of the fundamental practices worldwide

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Abstract

This paper focused on the concept of corporate governance based on shareholders’ and stakeholders’ perspectives and the development of corporate governance around the world, including the UK, the US, and Australia. The OECD Principles of Corporate Governance were presented, including shareholders’ rights, the equitable treatment of shareholders, disclosure and stakeholders’ rights and transparency practices, and the responsibilities of board of directors. Numerous corporate collapses have highlighted the call for the management and directors of companies to be more accountable, and they have led governments and international organisations such as the OECD to be more active in establishing principles of corporate governance. It was concluded that the system of corporate governance has increased in different countries in relation to the nature of the economy, legal systems, and cultural norms.

Keywords: Corporate Governance, Corporate Law, Shareholders, Disclosure, Directors

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: G3, G30, G38

Received: 25.04.2021
Accepted: 30.12.2021
Published online: 06.01.2022

How to cite this paper: Otman, K. (2021). Corporate governance: A review of the fundamental practices worldwide. Corporate Law & Governance Review, 3(2), 53–66. https://doi.org/10.22495/clgrv3i2p5